The Isle of Man insolvency test — is it time for reform?

With the Companies Bill 2013, which plans to consolidate and update the Isle of Man Companies Acts 1931–2004 (the 1931 Act), and a proposed new Insolvency Bill in the offing, the time is ripe for reform of the Isle of Man corporate insolvency test, found at section 163(1) of the 1931 Act (and applying irrespective of whether a company is incorporated under the 1931 Act or the Isle of Man Companies Act 2006).

A company is considered to be insolvent when it is unable to pay its debts. There are a number of tests for determining when a company is unable to pay its debts and it may be surprising to learn that the Isle of Man test differs from the current insolvency test in England.

In the Isle of Man, a company is deemed unable to pay its debts if it is proved to the satisfaction of the court that the company is unable to pay its debts and, in determining whether a company is unable to pay its debts, the court is required to take into account the contingent and prospective liabilities of the company…

If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Appleby

View more briefings from Appleby

Analysis from The Lawyer

View more analysis from The Lawyer


1st Floor
3 Copthall Avenue

Qualified lawyers: 223
Partners: 59